Prepare for the talent apocalypse

While a third of companies struggle to fill positions, the unemployment rate remains high. Increasing vacancies should mean increasing opportunities for the unemployed, but unfortunately the gap between the skills and experience available and those in demand is not being bridged.

The recent Manpower Talent Shortage Survey showed 35% of employers in Canada are struggling to find the right people and skills for vacancies, the highest result since the start of the recession more than five years ago. More than half (54%) said the shortage would have a medium or high impact on their ability to meet client needs.

Demand is highest for skilled trades, engineering, executive management and sales, according to Manpower VP of operations Byrne Luft. Many people were resistant about entering the sales industry, and changing attitudes about work/life balance were limiting the number of people choosing to aim for executive positions.

“There are more people today, especially from the younger generations, who are saying you’ve got to be crazy to have a job like that,” Luft said.

Many of the other shortage areas are related to a lack of skills and training, which needed to be addressed in the long term by companies, education institutions and the government.

“There needs to be government incentives for the employer to want to train staff and I don’t think the educational institutions are as aligned as they should be with the needs of employers today,” Luft said. “Employers also need to do better working with underemployed. When we look at people with disabilities or the aging workforce, employers need to consider how they can modify the roles they have to accommodate the needs of those groups.”

For example, could the 44-hours a week role be completed by two part-time workers instead of one full time? It’s also worth considering how many of the roles in your company could be done outside the office, such as a work from home or mobile worker arrangement.

See page 2 for Luft's suggestions about how organizations, along with the government and educators, can reduce the skill shortage.

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Reducing the talent shortage in the short and long term:

1. Retention strategy
   Have a written, long term strategy that shows how you plan to hang on to top staff. Increasing retention also reduces the cost of training because you’re keeping the individual for longer, which makes the per-year cost lower and improves ROI.
2. Show them the opportunities
   This can be one of the weaker areas for small businesses because it’s harder for people to advance and move around different roles but by having open discussions around what career paths are available you can encourage staff to take a long term viewpoint of their time with the company.
3. Pay competitively
   While pay may not be the only important thing, for many workers it is their first concern with a new role. Make sure you are at least meeting market expectations and if possible offer competitive benefit and perk packages as well.
4. Leadership
   The omniscient “they” say people leave managers, not companies and while there are exceptions this is generally true. “If you’ve got poor leaders and you’re seeing turnover in those teams you’ve got to have some development for those leaders, or you need to move them along because they could be really hurting your retention,” Luft said.
5. Teachable fit
   Look within your organization for people who don’t have the skills today, but who have the aptitude and desire for a specific role, then assess  what your organization can do to develop those individuals so they can take those roles on.
6. Work with local educators
   Let high school and tertiary guidance counsellors know that there are talent shortages in specific areas, and that certain industries are likely to have a good long term outlook. In some cases you could even talk to local colleges about offering specific courses and diplomas that fit your needs.
7. Credentialing
   Luft also suggested that industries across Canada needed to work together to streamline credentials, so they are accepted inter-provincially. It is difficult to encourage a worker to move across the country if they know they will have to re-train to work in their chosen field.